$19$C$.$

HYPOTHETICAL

$1.$ Suppose American Express, Visa, Mastercard, and Discover Card all charge merchant's a fee $($interchange fee$)$ for each time a customer swipes their credit card at the merchant's business.

$2.$ Discover card, in an attempt to become the preferred card amongst consumer's, decides to charge merchant's a lower interchange fee $($in comparison to the other $3$ credit card issuers$)$ for each credit card transaction.

$3.$ Additionally, Discover Card offered incentives to merchants to steer customer's$/$consumer$\text{'}$s towards using Discover Cards to pay for their purchases.

$4.$ In response to Discover Card's strategy, the other three credit card issuers $($Visa$,$ MasterCard, and American Express$)$ all agreed to force Discover Card out of business by not doing business with any merchant that accepted Discover Card.

$5.$ This meant that any merchant that accepted Discover Card could not accept Visa, MasterCard, or American Express.

QUESTION$$

Which of the parties is MOST LIKELY to be deemed to be violating antitrust law?

Group of answer choices

Visa, MasterCard, and American Express because their agreement is likely a violation of Section $1$ of the Sherman Act.

Discover Card because its strategy is likely a violation of Section $1$ of the Sherman Act.

Visa, MasterCard, and American Express because their agreement is likely a violation Section $2$ of the Sherman Act.

Discover Card because its strategy is likely a violation of Section $2$ of the Sherman Act.